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Anticipation of improved conditions in business and the job market caused consumer confidence to inch up in January.

The Conference Board Consumer Research Center, reports that consumers have begun the year in better spirits. As a result, the Index is now near levels not seen since last spring May 2010. Consumers rated business and labor market conditions more favorably and expressed greater confidence that the economy will continue to expand and generate more jobs in the months ahead. Income expectations are also more positive.

What is consumer confidence? It's measured in terms of the public's optimism about the economy. Consumer confidence is also measured in part by how much people are spending and saving.

Each month The Conference Board surveys 5,000 U.S. households. The survey asks for rankings on:

1. Current business conditions

2. Current employment conditions

3. Projected Business conditions

4. Employment conditions for the next six months

5. Total family income for the next six months

Consumer spending also rose in the latest survey, as reported by the Commerce Department. This was the sixth month of gains, and the highest it has been in four years, according to Business Week.